ANNEX “C”

SMALL ISLAND MANAGEMENT AGREEMENT

SIMA No. _______

of

_______________________
Name of the SIMA Holder

________________________
Location and Size of the Area

WHEREAS, this Agreement made and entered into by and

between the SECRETARY of the DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES with postal
address at Visayas Avenue, Diliman, Quezon City for and in behalf
of the Republic of the Philippines, and ______________________
with postal address at ________________ herein referred as the
SIMA HOLDER:

WHEREAS, pursuant to PD 705 as amended, CA 141 as

amended, E.O 192, RA 7942, RA 7586, DENR Administrative
Order No. 2000-83 and other related existing laws, rules and
regulations place the sustainable management and development of
the country’s natural resources under the full control and
supervision of the State or allow the State to enter into co-
production, joint venture or production sharing agreements with
Filipino citizens or corporations;

WHEREAS, the management of the small island in a

sustainable basis is encouraged as a government policy to ensure
that environmental considerations are incorporated in all
developmental activities within the small islands, to achieve
equitable distribution of opportunities, income and wealth and to
129
encourage the communities, NGOs and other governmental
agencies to participate in the rehabilitation, improvement and
sustainable use of the natural resources within the small islands;

WHEREAS, the SECRETARY and the SIMA holder

desire to enter into this Small Island Management Agreement,
hereinafter referred to as SIMA;

NOW THEREFORE, This Agreement made and entered

on the _____ day of ___________ by and between the Secretary of
the Department of Environment and Natural Resources and the
SIMA Holder hereby agree to the following and terms and
conditions provided herein below:

WITNESSETH:

1. That the SIMA shall have a term of twenty-five (25) years,

renewable for another twenty-five years and subject to the
approval of the Secretary.

2. That the SIMA holder shall within ______ from the date of this
Agreement is entered into and under the supervision of the
authorized representative of the Secretary, delineate and mark
on the ground the perimeter boundaries of the SIMA area
based on the land classification survey standard and established
control points using Philippine Reference System (PRS) 92 on
the ground. The boundaries of the SIMA area shall not be
altered nor modified, except when public interest demands or
upon mutual agreement by both parties.

3. That the SIMA holder shall within six (6) months from the date
of this Agreement is entered into, submit to the DENR, a
Small Island Management Plan (SIMP) covering the area
applied for consistent with the approved Island Physical
Framework Plan (IPFP). The SIMP shall contain the
appropriate land uses allowed within this small island; the
management, improvement, protection, and utilization of
natural resources therein; environmental protection,
130
 infrastructure development and community development
arrangements with local communities and dependents within
the SIMA area, if there are any. The SIMP shall be reviewed
by the PENRO/CENRO concerned and approved by the RED.

4. That the SIMA holder shall manage and protect the production
residual natural forest, if there is any, in accordance with laws
and regulations governing forestlands. In the same manner,
protection forests found therein shall not be subject to any form
of utilization as prescribed under the IPFP. Moreover,
mangroves and coral reefs shall in no way be allowed to be
utilized.

5. That the sharing of profits shall be scheduled according to the

following uses;

a. The sharing of profit arising from the utilization of

established plantation by the SIMA holder shall be
negotiated between the said holder and the DENR prior to
cutting which shall not be less than the 5% of the gross sale
and subject for review every five (5) years.

b. For recreational areas, settlements, bathing establishments,

foreshores and other special forestland uses, the SIMA
holder shall be charged an annual user fee/rental fee for the
land not less than 5% of the appraised value of the land and
1% of the appraised value of the improvements and shall be
subject for review every five (5) years.

c. For ecological destination, the amount of user/rental fee

shall be based on the target market (capacity and
willingness to pay), the type of destination (ecological
uniqueness), the area to be developed and the extent of
investment required which shall be determined by the
assessment team created for this purpose, in accordance
with existing rules and regulations on ecological
destination.

131
6. That the SIMA holder shall pay the rental/user fee, due without
the necessity of notification, on or before the 7th day of January
of the following year and every year thereafter. For failure to
pay the annual rental/user fee on the date due, the SIMA holder
shall be penalized by additional charges to be fixed by the
Secretary of DENR. Failure to pay without justifiable cause,
the charges and surcharges within one year after the regular
rental/user fee had become due and payable shall be sufficient
reason for the cancellation of the agreement. However, for
ecological destination, the payment for the rental/user fee shall
be made within three (3) months after the assessment has been
conducted.

7. No refund shall be made for the annual rentals paid for the use
of the area covered by this SIMA due to its cancellation, before
its expiration through the request of the SIMA holder or for
violation of any terms and conditions of this SIMA or of any
existing laws, rules and regulations.

8. Upon the expiration of this Agreement, all permanent

improvements introduced, including forest crops, shall
remain in the SIMA area, but the SIMA holder shall be
entitled to fair compensation for such improvements with
due consideration to the government share. The SIMA holder
may remove any temporary or semi-permanent structures
unless the Secretary opts to retain the same and pay the SIMA
holder on the amount mutually agreed upon.

9. Fair compensation of any improvements, whether due to the

government or to the SIMA holder, shall be determined by a
committee composed of one representative of both the
Secretary and the SIMA holder, and a qualified independent
appraiser whose appointment shall be mutually agreed upon by
the Secretary and the SIMA holder. The SIMA holder and
Secretary shall bear equally the cost of the appraisal.

10. That in case of death of the SIMA holder, the Agreement is

deemed terminated. All permanent improvements, including
132
 plantations, shall become the property of the estate of the
SIMA holder. If the heir/s are qualified to hold the SIMA, a
new agreement between the Secretary and the surviving heirs
of the SIMA holder maybe executed for the remaining period
of the SIMA, in accordance with the requirements provided
under existing regulations, provided that the heir/s file an
application within three (3) months after the death of the SIMA
holder. If the heirs are not qualified or elect not to enter into a
new agreement, the estate shall be entitled for compensation
for all the permanent improvements thereon, with due
consideration to the government share, payment of which shall
be borne by the party entering into a new agreement.

11. In the event of the cancellation of the agreement due to the

fault of the SIMA holder, all improvements existing within the
area shall be forfeited in favor of the government. If a new
Agreement is executed by and between the Secretary and
another party, such improvements shall be appraised and the
new SIMA holder shall compensate the government within
ninety (90) days upon execution of the said agreement.

12. That this agreement may be renewed for ANOTHER

TWENTY FIVE (25) YEARS upon the filing of an application
for renewal at least sixty (60) days prior to its expiration;
Provided, that if no application for renewal is filed within the
said reglementary period, the area is considered vacant and its
disposition shall be governed by the regulations current at the
time.

13. That the SIMA holder shall not sublet the area or any part
thereof, including improvements therein, assign such
agreement or encumber the rights hereunder without prior
written permission from the Secretary.

14. That in case the said holder shall be permitted to sublet the
whole or any part of the improvements on the land, the
government and the SIMA holder shall be entitled to a share of

133
 fifty per centum (50%) each of the sublease rental in excess of
10% of the assessed value of the improvements subleased.

15. That this Agreement may only be amended upon mutual

consent by the parties herein and executed in a written
instrument.

16. The Secretary or his duly authorized representative/s shall

exercise visitorial power to ensure faithful compliance of the
terms and conditions of this Agreement and extend necessary
technical assistance as identified in the SIMP.

17. That the SIMA application filed and the SIMP on which the
granting of this agreement is predicated, shall be considered as
part of this agreement and any omission or misrepresentation
in, or violation of the statements in the said documents shall
give the right to the DENR to rescind this agreement to recover
the land and to forfeit all amounts already paid and the
improvements made or existing thereon.

18. That this agreement shall remain in effect until ____________

unless sooner terminated under the provisions thereof, and that
no presumption of renewal or continuance beyond the day can
arise for the SIMA holder hereby waiving all rights in this
respect conferred by the pertinent provisions of the Civil Code.

19. That this Agreement may be terminated for failure to comply

with any of the terms and conditions provided for in paragraph
1 to 18 hereof and other pertinent laws, rules and regulations.

IN WITNESS WHEREOF, the said parties have hereunto

set their hands.

_____________________ ______________________
DENR Secretary SIMA Holder

134
SIGNED IN THE PRESENCE OF:

_____________________ ____________________
_____________________ ____________________

REPUBLIC OF THE PHILIPPINES)

:S.S
)

On this ______ day of ________, before me a notary public

personally appeared ______________ and __________________,
Secretary, DENR, with Residence Certificate Nos. __________
and ___________ issued at ___________ and ___________on
__________ and ________, respectively to me known to be the
same persons who signed the foregoing document and
acknowledged to me that on behalf of the Republic of the
Philippines have executed the same as their free and voluntary act.

The within contract, conveying one (1) parcel of land, and

consisting of five (5) pages, including those on which this
acknowledgment and the technical description of the land are
written, has been signed by them and their two (2) witnesses on the
left margin of each and every page thereof.

Each and every page of the contract is sealed with my notarial seal.

NOTARY PUBLIC
My Commission expires on
_______________, 20____

Doc. No. ____________;

Page No. ____________;
Book No. ___________;
Series of ____________;

135
 SERIAL No. _________

Republic of the Philippines

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

SMALL ISLAND MANAGEMENT AGREEMENT APPLICATION

Regional Office No. ____ PENR Office ______ CENR Office _______

I. I hereby file this application for (check appropriate box/es)

Ecodestination Other Special Forestland

Uses (specify) _________

Plantation Establishment Mixed Use

Recreation Use/Settlements/ Others (specify) _______

Bathing/Establishments/
Foreshores/Hotels/Ports/Piers

II. The land applied for is more particularly described in the IPFP as
follows:

Lot No. _________ Survey No. _______Area (ha/sq/m/) _____________

Location (Barangay, Municipality/City) __________________________
Province of _________________________________________________

III. My personal circumstances are as follows:

Name of Applicant: ____________________________________________

Address: _____________________________________________________
Age: _______ Place of Birth: ________Civil Status: ________________
(if married, state name of spouse, birthplace, citizenship, residence address
and attach his/her marital consent)

If application is filed in the name of heirs of a deceased claimant, indicate

the name of predecessor in interest below:
Name:___________________ Address: __________________________
Age: ____ Date of Birth: _______ Place of Birth: ___________
Citizenship:_______ Civil Status: ________
Name of Spouse: ______________________

136
IV. Questions which must be answered by the applicant: (check appropriate
box/es):

1. Is the land applied for claimed by any other person or subject of any
case/dispute involving ownership?

Yes No

2. Is the land applied for claimed by any other person or subject of any
ease/dispute involving ownership?

Yes No

I agree to all conditions, terms, restrictions, prohibitions imposed on

this application and to observe the liens, encumbrances, easements and
servitudes provided by laws, rules and regulations and declare that I have met all
the qualifications and none of the disqualifications required for this application
as provided by the pertinent laws.

I understand that if I willfully and knowingly submit false statement

and apply for SIMA despite not being qualified to do so, my application shall be
rejected or cancelled, and all amounts paid on account thereof shall be forfeited
in favor of the government and I shall no longer be entitled to apply for any
SIMA in the Philippines.

I have read and thoroughly understood this application and I affirmed

that this was translated to the dialect that I understand and that all the statements
therein are true and correct to my knowledge and belief.

_____________________
Applicant

SUBSCRIBED AND SWORN to before me, this ____day of

_________ 20_____, at _____________________ applicant exhibiting his/her
Community Tax Certificate No. ________________ issued at
________________on ______________20_______.

_____________________________
Notary Public
Officer Authorized to Administer Oath
Doc. No. __________
Page No. __________
Book No.__________
Series of __________

137
IMPORTANT NOTE: This application is to be submitted in quadruplicate and
must comply with all the Requirements, otherwise, it will not be accepted. A
checklist of requirements for each kind of application form is attached to this
document.

138